Today the contract became worthless and I could buy it back for 5 dollars a contract without paying commission for it. I held the contract for 22 days only and I was able to close it 14 days prior to expiration.

Closing the trade now instead of waiting until expiration I could release my maintenance cash, collect my premium and open a new trade instead.

The original trade brought me $81.00 before commissions. By buying it back my profit was $76.00. After commissions I realized 2.29% profit.

You may have mentioned this before but how do you buy back the put without paying commission? Which broker are you using? E*Trade charges about a $10.80 transaction fee to buy back puts. The only way there’s not cost for me is if they expire worthless.

I am with TD Ameritrade and they do not charge commission if the contract is 0.05 or less. They still charge the CBOE fee which is 0.04 per contract (not $4 !). As I learned it is only TD Ameritrade which have this feature. Other brokers may still have charge the commission.